Olympus cover-up deal decided by just 3 execs

One of the questionable contracts concerning corporate buyouts by Japanese camera and medical equipment maker Olympus was reportedly decided by only 3 executives at the company. The buyouts were apparently aimed at covering up investment losses.

Olympus admitted on Tuesday that since the 1990s, it had used corporate purchases to hide losses from securities investments.

The company recorded a payment of 687 million dollars to a consulting firm in advisory fees related to its acquisition of a British medical equipment maker in 2008. Much of that money is believed to have been used to conceal the losses.

Informed sources say the contract with the consulting firm was decided by only 3 Olympus executives -- former President Tsuyoshi Kikukawa, dismissed Vice President Hisashi Mori and auditor Hideo Yamada. The sources say the deal was made without the knowledge of the company's board of directors.

Japan's Securities and Exchange Surveillance Commission will investigate the 3 men's involvement in the cover-up and the faulty accounting.

A third-party panel set up by Olympus to look into the buyouts says it will compile a report by the end of this month.

Wednesday, November 09, 2011 15:58 +0900 (JST)